Becton Dickinson and Company: Multidivisional Marketing Programs

Becton Dickinson and Company: Multidivisional Marketing Programs Olivia Hovey, Austin Bridgers, Nik Donlin, & Clay KillgoreAbout Becton Dickinson (BD)Manufactures products for health care professionals, medical institutions, industry, and the general publicDivided into two sectors:Medical Diagnostic Five Operating Divisions BDAC, BDD, BDMS, BDVS, & DM

About Health Medical Center (HMC)Carrier of products bought from all five divisions of BD Leading teaching hospital in the southeastern United StatesBought $252,000 of medical supplies $216,000 in needles and syringes in 1988 Facing a severe budget deficit Attractiveness of multidivisional marketingStress the importance of BD within their accountCan help cut costs through Supply Chain Management along with cross-divisional coordination effortsBDD will also be able to better translate the value added services to the end users rather than administrative personnelChanges in managerial personnel will allow the start up of a new marketing programFactors that aid and inhibitCircumstances for implementation: StrategyA multidivisional strategy would increase the opportunity to raise awareness of unused products and services Multiple divisions selling to an account regularlyAccount size justifies increased attentionValue-added services will increase BD attractiveness

Do these circumstances apply?YesAccount sizeCurrently buying from 5 different divisionsMutually beneficialReduction in costs for HMCIncreased sales for BDD Whats at stake?For BD:Undercutting one division would cause problems with other divisionsA potential key account relationshipOpportunity for growth in divisions For BDD:If no action is taken they will lose their account with HMC$252,000 in sales to HMCFor various personnel at HMC?Layoffs 100+ hospital personnel$175,000 expense reduction from materials management

Key PlayersBDDJohn Kmetz: Sales rep Ramon Gilmartin: CEORobert Jones: VP Sales Robert Flaherty: PresidentHMCJoanne Wilson: Purchasing ManagerStan Delaney: VP of Financial ServicesPhil Robinson: Administrator of Financial ServicesJudy Koski: Director of Material Management

RecommendationsMr. Jones should recommend the multidivisional marketing strategy Discuss the long-term cost savings with the key HMC executivesAvoidance of a price war with Terumo at all costsImplementation ProcessIdentify target accounts in which the new marketing structure would be successfulIdentify communication channels within these accountsEnsure divisional managers support this processDetermine which value-added services will be offeredHave cost savings and specific financial information ready when meeting with account representativesPotential 25-30% reduction in supply chain costs